Seven slashes debt, looks to banks’ ad spend

Original article by Max Mason
The Australian Financial Review – Page: 23 : 20-Feb-19

Seven West Media has posted a 2018-19 interim underlying net profit of $91.8m, which is 7.8 per cent lower than previously. Revenue was 1.5 per cent lower at $797.4m. Seven has scaled back its full-year EBIT growth forecast to no more than five per cent at best. CEO Tim Worner says Seven was affected by the weaker advertising market, but he expects banks and insurers to increase their advertising expenditure in the wake of the Hayne royal commission. He adds that free-to-air TV is a compelling proposition for banks as they seek to rebuild trust in their brands.

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SEVEN WEST MEDIA LIMITED – ASX SWM, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, CCZ EQUITIES PTY LTD, AIRTASKER PTY LTD, HEALTHENGINE PTY LTD, SOCIETYONE AUSTRALIA PTY LTD

Australia Facing a Brick Wall of Blackouts by Jerry Ellis and Sir Rod Carnegie

19 February 2019

The Chairman of the Saltbush Club, Mr Jerry Ellis, today warned that Australia needs more reliable baseload power.

“With the population and the economy growing, but with electricity availability and reliability in decline, we are racing headlong into a brick wall of blackouts.

“Recession and disruption will probably follow, bringing to mind those memorable 1990 words of Paul Keating: ‘This is the recession we had to have’. Except in this case the recession will be self-inflicted.

“Much of my working life was in the steel industry in the 1970s and 1980s. It operated 24×7, with large numbers of electric motors requiring a continuous supply of low-cost electrical power. Un-planned interruptions were rare, but when they occurred they were very costly.

“Now we face the prospect of planned and unplanned loss of power due to the rundown of base-load power capacity. It must be a nightmare for today’s steelmakers and aluminium refineries facing this growing crisis.

“It is essential that Australia rebalances economic imperatives against populist ideas regarding the release of carbon dioxide to the atmosphere.

“A strong Australian economy is crucial to Australia’s welfare and will also make a valuable contribution to world prosperity.

“Australia produces a tiny proportion of the world’s carbon dioxide. Even total closure of our industry would have no detectable impact on carbon dioxide emissions or global climate.

“We urgently need new supplies of reliable energy from coal, gas, hydro or nuclear.”

Jerry Ellis was supported by Sir Rod Carnegie, former Managing Director, CEO and Chairman of CRA (Rio Tinto) who said:

“It is essential that Australia regains its reputation for cheap reliable electricity or we will lose our manufacturing and refining industries, returning only to our backbone industries of agriculture and mining”.


Jerry Ellis
Email: ellisann3@gmail.com

Jerry Ellis once managed Australia’s biggest steelworks at Port Kembla, and one of the world’s largest mining enterprises BHP minerals. He is a past Chairman of BHP and of Landcare.

Sir Rod Carnegie
PA Phone: 0419 329 700

Saltbush Club
Viv Forbes

Last weekend’s Roy Morgan ‘face-to-face poll’ shows: ALP 52.5%, L-NP 47.5%. L-NP jump 3% on 2PP after ALP vote to loosen border protection laws

An Australia-wide Roy Morgan face-to-face poll conducted over the weekend (February 16/17, 2019) with a cross-section of 851 Australian electors shows the ALP 52.5% cf. L-NP 47.5% on a two-party preferred basis.

This shows a 3% swing to the L-NP following the ALP’s decision to support a loosening of Australia’s border protection laws by backing a ‘Medivac Law’ allowing for the transfer of refugees and asylum seekers already on Manus Island or Nauru to Australia for medical reasons given the recommendation of two doctors. The Home Affairs Minister then has a right to reject the transfer however the Minister’s decision is itself subject to further review.

The L-NP primary vote is now 37% (up 2.5%) overtaking the ALP primary vote which has fallen 1.5% to 34.5%. Support for the Greens is down 1% to 11.5% while support for One Nation has increased 0.5% to 3.5%. Support for Clive Palmer’s UAP is unchanged at 1% while support for Independents/Others is down 0.5% to 12.5%.

Gary Morgan, Executive Chairman Roy Morgan, says:

“The results of last weekend’s Roy Morgan poll show the issue of border protection is a major strength for the L-NP however a lot can happen between now and when the Federal Election is due in May.”

Roy Morgan Poll, conducted February 16/17, 2019 – Australia-wide cross-section of 851 Australian electors.

Roy Morgan Poll, conducted February 2/3 & 9/10, 2019 – Australia-wide cross-section of 1,673 Australian electors.

Call for ABC to go back to basics

Original article by Nick Tabakoff, Andrew White
The Australian – Page: 24 & 26 : 18-Feb-19

The process for recruiting a successor to the ABC’s former MD Michelle Guthrie has begun, with newspaper advertisements stating that the successful candidate will need to be a ‘strong collaborative leader’. Contenders for the role are said to include acting MD David Anderson, the ABC’s head of news Gaven Morris, former Foxtel CEO Kim Williams and former SBS MD Michael Ebeid. A former ABC executive says Anderson would be regarded as a safe choice as he has been at the public broadcaster for a long time and is highly respected within the ABC.

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AUSTRALIAN BROADCASTING CORPORATION, FOXTEL MANAGEMENT PTY LTD, SPECIAL BROADCASTING SERVICE (SBS), NEWS LIMITED

HT&E tunes in to potential deals after strengthening balance sheet

Original article by Max Mason
The Australian Financial Review – Page: 19 : 14-Feb-19

Radio broadcaster HT&E has posted a net profit of $36.7m for calendar 2018, which is 23 per cent higher than previously. Revenue was five per cent higher at $271.8m and EBITDA rose seven per cent to $71.8m. The company’s Australian Radio Network division has posted revenue of $235.5m and EBITDA of $84.6m for the year. CEO Ciaran Davis says HT&E is open to acquisitions, but he says there are no "definitive opportunities" at present.

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HT&E LIMITED – ASX HT1, AUSTRALIAN RADIO NETWORK PTY LTD, ADSHEL PTY LTD, NZME LIMITED – ASX NZM, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, ALLAN GRAY AUSTRALIA PTY LTD

Radio star Jones fights to overturn gag order

Original article by Charlie Peel
The Australian – Page: 1 & 2 : 14-Feb-19

A Brisbane court is hearing an application to lift an injunction that prevents veteran radio broadcaster Alan Jones from repeating imputations that prompted a record defamation payout in 2018. The Wagner family was awarded $3.75m in damages after the Supreme Court ruled that Jones had defamed them in a series of broadcasts on 2GB and 4BC. The Wagners’ lawyer has argued that the injunction simply prevents Jones from repeating the allegations and does not prevent him from discussing the case.

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2GB, RADIO 4BC BRISBANE PTY LTD, SUPREME COURT OF QUEENSLAND, COURT OF APPEAL (QUEENSLAND)

Directors walk out of DJs’ parent firm

Original article by Sue Mitchell
The Australian Financial Review – Page: 21 : 13-Feb-19

Gail Kelly and Patrick Allaway have resigned from the board of Woolworths Holdings. They had been re-elected as non-executive directors of the South Africa-based group in late 2018, prompting investors to speculate about the reason for their departure. Woolworths Holdings owns Australian department store chain David Jones, whose CEO David Thomas recently resigned for personal reasons. An investigation by law firm Ashurst had previously cleared him of a discrimination allegation.

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WOOLWORTHS HOLDINGS LIMITED, DAVID JONES LIMITED, ASHURST LLP, WESTPAC BANKING CORPORATION – ASX WBC, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, COUNTRY ROAD LIMITED

JB Hi-Fi surges as tech reigns

Original article by Eli Greenblat
The Australian – Page: 19 : 12-Feb-19

Consumer electronics retailer JB Hi-Fi has posted a 2018-19 interim net profit of $160.1m, which is 5.5 per cent higher than previously. JB Hi-Fi has forecast that its full-year net profit will be within the range of $237m to $245m; full-year sales are expected to be $7.1bn, after sales totalled $3.843bn in the first half. CEO Richard Murray says consumers still seem to be buying gadgets such as smartphones and internet-connected fridges, at a time when many discretionary retailers are struggling.

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JB HI-FI LIMITED – ASX JBH, THE GOOD GUYS, OPHIR ASSET MANAGEMENT PTY LTD

Digital market abuse almost limitless: News

Original article by Andrew White
The Australian – Page: 27 : 9-Feb-19

News Corporation has posted revenue of $US2.63bn ($3.7bn) for the December 2018 quarter, an increase of 21 per cent. EBITDA rose by 13 per cent to $US370m following the merger of Foxtel and Fox Sports, while the media group’s net profit of $US119m compares with a loss of $US66m for the same period in 2017. Meanwhile, News Corp CEO Robert Thomson has criticised the growing dominance of digital platforms in the US audiobooks market. He has called for a "regulatory reckoning" to address the issue.

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NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, AMAZON.COM INCORPORATED, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, HARPERCOLLINS, DOW JONES AND COMPANY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Labor demands say on picking Aunty’s chair

Original article by Lilly Vitorovich
The Australian – Page: 3 : 6-Feb-19

Shadow communications minister Michelle Rowland says Labor should be consulted about the appointment of a successor to Justin Milne as chairman of the ABC. She has criticised the federal government’s poor record with regard to ensuring the ABC’s independence, noting in particular its failure to respect the independent nomination panel process for appointments to the board. The ABC’s ‘Media Watch’ program has reported that Communications Minister Mitch Fifield was given a shortlist of three candidates in mid-January.

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AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, GILBERT AND TOBIN LAWYERS, CITIGROUP PTY LTD, AUSTRALIAN FOOTBALL LEAGUE